News

Consequences of lost documentation and status and what will happen in the future

NorInvent AB’s (“NorInvent”) share has been stalled since 9 April 2018 at 09.00. In order to clarify the company’s status NorInvent hereby publishes an update on how the company is affected by the lack of documentation regarding XtriG and how it affects the company in the future. The list below contains the most important information and the consequences. For a more detailed description, refer to the attached appendix (in Swedish), which should be read to form a comprehensive view.

NorInvent lacks documentation from original research, meaning that there is no objective evidence of the conducted XtriG experiments that underlie the company’s ongoing research.

Lack of documentation from original research means that basic, exploratory studies are required to re-discover a working variant of XtriG.

Results from the new planned explorative binding and absorption studies, made with structural elements of XtriG, determine the way forward for NorInvent.

Positive outcome means that the company is back at the same stage as at the time of listing in May 2017, which means delaying the project by approximately nine months. From a risk perspective, there is a greater risk that this XtriG variant will not work in further animal studies compared with the XtriG variant previously used successfully in animal studies. Negative outcome means that the company would have to go back to the basic research stage regarding XtriG, which means a delay in the project that is difficult to estimate, but at least about 21 months.

The company’s current cash assets will last at least through September 2018. The company’s capital requirement for further studies aftger the planned studies amounts to between 15-25 MSEK, depending on the outcome of the company’s planned explorative binding and absorption studies.

Future capital needs of 15-25 MSEK for the purpose of financing future studies

NorInvent’s capital needs are dependent on the company’s continued research development. At present, the company has financial resources to carry out operations at the current pace up to mid-year 2018. After that, the company will have to reduce costs and carry on business at a slower pace. Costs are reduced primarily by not carrying out further studies beyond the already planned binding and absorption studies. The company’s current cash assets are expected to last at least through September 2018. In the event that the company’s planned studies in the second quarter of 2018 would result in positive outcomes, the company could conduct initial animal studies and preparatory documentation for clinical studies. The company’s capital requirement for further studies in this scenario would amount to approximately 15-20 MSEK and finance the company until the end of 2019. In the case of negative outcomes from the planned studies, the company’s capital needs would increase by an additional approximately 5 MSEK, in order to fund further basic studies to identify an effective variant of XtriG, which means that the capital requirement in this scenario would amount to approximately 20-25 MSEK and finance the company until the end of 2020/2021.

This information is information that NorInvent AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Paul Hasselgren (CEO, NorInvent AB), at 17:47 CET on April 11, 2018.